Keeping the Albion Park aeromedical helicopter in its present location within the HARS hangar could potentially save millions of dollars.
The helicopter is at the Historical Aircraft Restoration Society's building but Shellharbour City Council has a project on the Illawarra Infrastructure Fund shortlist to build a separate $6.5-million facility to house the chopper and staff.
HARS spokesman Michael Hough said the group would be happy to continue to allow the helicopter to remain where it is.
"HARS has recommended to council a strategy to relocate the aeromedical rescue helicopter in such a way that would reduce the cost of the relocation from about $6.5 million down to about $2.5 million by taking up the option that HARS was negotiating with the helicopter service, which was to locate the helicopter inside the HARS hangar complex permanently," Mr Hough said. He said reducing the cost of the project to $2.5 million might make it more likely to receive funding.
Bruce Green, director of Shellharbour Enterprises at Shellharbour City Council, said the council was in the process of looking at the costings of the facility.
He said that the HARS offer would be seriously considered by the council.